Bulgaria Payroll Services

At Bradford Jacobs, we navigate the administration of the Bulgarian payroll system for you. We do the work, so you do not have to.

Bulgarian Payroll

It is essential for companies planning to run Payroll Services in Bulgaria to have a clear plan and make the right moves from day one. The Republic of Bulgaria is strategically located in central and eastern Europe’s rapidly developing economic zone.

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Bulgaria is at the crossroads of north-south routes to the Mediterranean basin and west and central Europe to the Middle East. It is ideally positioned for investment by international companies who have set their sights on the region’s economic potential.

Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.

Setting up a subsidiary in Bulgaria to run payroll is one option, but this involves a lengthy process and poses many challenges. Our Professional Employer Organisation (PEO) and Employer of Record (EOR) services provide complete solutions to every issue your company will face before your planned move into the Bulgarian Market. Our teams step in from the start, locating top-rated talent in Bulgaria and then guiding you through such procedures and navigating the administration of the Bulgarian payroll system for you.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Bulgaria to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in the Bulgaria. However, this does require hiring dedicated HR staff who understand Bulgarian employment and compliance laws.
  • Bulgarias’ payroll processing company – If you are considering outsourcing, then working with a Bulgarian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Bulgarias’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Bulgaria. We take the administrative stress off your shoulders so you can focus on what you do best.

Bulgaria’s blossoming economy has become an increasingly important location for international companies expanding their businesses overseas. Among the bonuses is Bulgaria’s well-established European Union (EU) membership since 2007, which widens the horizon of opportunities in its free market and further afield. These opportunities come with challenges – and payroll management is one of the trickiest. Whether your company is planning to move staff abroad or hire employees in the new territory, you cannot risk mistakes operating in Bulgaria’s payroll and income tax regime – it could cost you time and money.

Foreign companies planning to operate the payroll for their staff in Bulgaria must establish a legal entity as a subsidiary to deal with the National Revenue Agency (NRA) for taxation and the National Social Security Institute (NSSI) for insurance and other compulsory contributions. The most popular choice is to set up the Bulgarian equivalent of a private limited liability company (or LLC), known in Bulgaria as a drujestvo s ogranichena otgovornost (OOD), which has two or more shareholders. The subsidiary incorporates under the Bulgarian Commerce Act, which regulates the types of business entities allowed in Bulgaria.

However, this represents a significant move. Operating payroll in Bulgaria requires detailed practical knowledge of company, tax and employment legislation – and staying up to date with regular changes to the rules.

Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then implement our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities. Your new staff members can be up-and-running in days rather than the weeks it would take to set up a legal entity in Bulgaria.

Outsourcing payroll in Bulgaria will streamline your operations by dealing with the following:

  • Registering employees with the relevant National Revenue Agency (NRA) office in one of Bulgaria’s 28 district centres.
  • Obtaining the Tax Identification Number (TIN) for foreign employees when registered with the NRA, whether long-term or permanent residents or in Bulgaria, solely for tax purposes.
  • Ensuring Bulgarian employees have their Unified Civil Number (UCN), which acts as their TIN and is assigned at birth or when individuals receive Bulgarian ID documentation.
  • Registering with the relevant office of the National Social Security Institute (NSSI) – is a compulsory requirement for social insurance contributions.
  • Remitting due payroll taxes to the NRA and social security contributions to the NSSI.
  • Drawing up employee contracts complying with the Bulgarian Labour Code and the Obligations and Contracts Act. Within three days of signing, the agreement must be filed with the NRA no later than the day the employee is due to begin work.

International companies planning to operate payroll services in Bulgaria must settle on the best business structure for their plans. The most popular choice is a private limited liability company. These are known in Bulgaria as a drujestvo s ogranichena otgovornost (OOD), which has two or more shareholders. The subsidiary incorporates under the Bulgarian Commerce Act, which regulates the types of business entities permitted to function in Bulgaria.

Procedures required by the Commerce Act include the following and apply to both foreign and local companies:

  • Obtain the nine-digit Tax Identification Number (TIN) from the Registry Agency, which administers the BULSTAT Register (Commercial Register).
  • Obtain the Unified Identification Code (UIC), or BULSTAT Code, that identifies all business entities in Bulgaria. The BULSTAT UIC is quoted in all business documents.
  • Notarized incorporation documents for the Registry Agency – power of attorney, Articles and Memorandum of Association.
  • Notarized IDs for all founders of the subsidiary.
  • Registration with the National Revenue Agency (NRA) to withhold and remit payroll taxes.
  • Once entered in the Commercial Register, the NRA automatically registers the company for Value Added Tax as per the Tax Procedure Code and Value Added Tax Law to receive the VAT number, prefixed BG.
  • Open a bank account for depositing initial share capital, subsequently replaced by a business bank account.
  • Minimum share capital cannot be less than two Bulgarian leva (BGN), €1 or US$1.

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